This IDC Perspective discusses the top retail generative AI (GenAI) use cases. Over 63.8% of retailers are investing in generative AI, focusing on use cases like natural language understanding and content generation despite facing challenges such as IT complexity and talent shortages. Retailers prioritize GenAI applications that offer measurable business value with top use cases including customer support chatbots, in-store associate knowledge bases, and digital search/product discovery. These applications align with GenAI's unique capabilities, offering potential for improved efficiency, productivity, and customer engagement."Generative AI is taking the retail industry by storm — what we think is an innovative use case now will be routine in less than 18 months." — Ananda Chakravarty, research VP, IDC Retail Insights
Please Note: Extended description available upon request.
Executive Snapshot
Situation Overview
Adoption of GenAI and Challenges for Retail
Retail GenAI Use Cases Proliferate
GenAI Use Cases Categories
Alignment of Use Cases
Data Characteristics
Interface Characteristics
Generative Characteristics
Minimal Change or Easy Transition
Immediacy of Results
The Top Use Cases for Retail
Use Case 1: Customer Support Chatbots and Assistants